© Reuters. FILE PHOTO: A JetBlue passenger jet lands with New York City as a backdrop, at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019. REUTERS/Chris Helgren/File Photo
(Reuters) – JetBlue Airways (NASDAQ:) said on Tuesday it was evaluating further cost cuts after the company forecast a fall in first-quarter revenue amid early signs of softening domestic demand.
The airline’s shares were down 1.1% in premarket trade.
The company is also dealing with engine issues related to Pratt and Whitney’s Geared Turbofan engines that multiple JetBlue aircraft use.
The carrier currently has seven aircraft out of service and the number is expected to be between 13 and 15 by the end of 2024.
Rising costs and early signs of softening domestic travel demand have raised worries about the airline industry’s profitability. Smaller airlines are also losing their edge over pricing due to intense competition from larger carriers.
JetBlue expects first-quarter revenue to fall between 9% and 5%, while full-year revenue is expected to be flat compared with last year.
The company, however, reported a smaller-than-expected loss of 19 cents per share. Analysts had expected a loss of 28 cents, according to LSEG data.
JetBlue also said it will move underperforming capacity to premium leisure and popular markets.
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